Californians consistently pay a dollar to a dollar fifty more for our gasoline and there`s no good reason for it.

By Anne-Marie Green, CBS NEWS

October 28, 2019

ANNE-MARIE GREEN: And California Governor Gavin Newsom has ordered an investigation into soaring gas prices in the state. Carter Evans reports.

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CARTER EVANS: Eye-popping prices at the pump are a harsh reality for Californians.

JAMIE COURT: We consistently pay a dollar to a dollar fifty more for our gasoline and there`s no good reason for it.

CARTER EVANS: Consumer Watchdog`s Jamie Court calls it the Golden State gouge.

JAMIE COURT: California`s become an ATM for these oil refiners, and finally the governor`s saying no, no, no.

CARTER EVANS: Governor Gavin Newsom is now ordering an investigation.

GOVERNOR GAVIN NEWSOM: I believe something is happening to manipulate those prices but I cannot prove that.

CARTER EVANS: In California, drivers pay four-oh-seven a gallon; in Montana, two seventy-one. After subtracting the cost of environmentally regulated gasoline blends and the highest gas taxes in the country, California consumers are still paying about thirty-three cents more. But a new analysis by the California Energy Commission found ".the primary cause of the increase is simply that California`s retail gasoline outlets are charging higher prices." Gas station owner Andre van der Valk agrees. He cites high rent, wages and insurance increases--costs he`s passing on.

ANDRE VAN DER VALK: Every day, for instance, we`re waking up with some increase in how we do business, and that`s where that thirty cents is.

CARTER EVANS: Are you making any more profit because you`ve raised your prices?

ANDRE VAN DER VALK: No. That`s a good question. The answer is no.

CARTER EVANS: Californians voted for many of the taxes and environmental regulations that led to these high prices. Still, even just the threat of an investigation may be enough to bring prices down a little.

Carter Evans, CBS News, Los Angeles.

That`s the CBS MORNING NEWS for this Monday. Thanks for watching. I`m Anne- Marie Green. Have a great day.